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Replies (5)
- Nick Pakulla, "MD DC VA Mortgage"
- Contributions:63
The two criteria the will be most impacted from the result of your condo's will be your debt to income ratio and if you were to sell your cash for a new home. Without having a full financial picture it is difficult to advise on what would be best for your situation.
A few key questions that would lead a lender to an answer would be:
-Would you have enough money after settlement of both for at least 3.5% down on the new home?
-Does your income support holding 3 properties given your current debts?
You will also likely want numbers ran on the new property to see if you would feel comfortable potentially renting out one or two with the new house payment. Feel free to call if you would like to go over this.
- Rohit Mohan, "MortgageGeek"
- Contributions:100
Here are the options based on what you asked
1)you can qualify for the new loan + the other 2 home payments ( not counting the future rental income) then you can buy a SFH without selling the condos.
2) Sell the condo and take a loss, but move into a SFH at a good price and start fresh
3) You can also pay down the principal balance on the condos to make it 90% of the value to count the future rental income for an FHA loan on the new purchase
I would advise you to run detailed numbers with a local motgage broker.
Good Luck!
- Jason Nowak, "jnowak1027"
- Contributions:80
Rohit- I thought it was 70% LTV for conventional and 75% for an FHA to be able to use rental income on the new qualifications... not sure where you found 90%.
- Rohit Mohan, "MortgageGeek"
- Contributions:100
@ Jason- You are correct. It is 75% LTV for FHA to use 90% of the rental income :) Sorry about that ! :)
- MarianTaliaferro
- Contributions:2
Thanks for the advice everyone!
buying SFH when both of us each has condo in this market
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